Aurobindo Pharma (AUROPHARMA) Q3 25/26 earnings summary

Executive summary

• Q3FY26 revenue reached ₹8,646 crore, up 8.4% year-over-year, driven by strong Europe and stable US performance, with new facilities and product launches supporting future growth.

• EBITDA rose to ₹1,773 crore (margin 20.5%), up 9% YoY, reflecting operational efficiencies and stable gross margins.

• Net profit increased to ₹910 crore, a 7.6% YoY rise, with reported EPS at ₹15.67, up 7.7% YoY.

• Free cash flow of $118 million generated in the quarter, with net cash (including investments) at $251 million as of March 2025.

• Standalone and consolidated unaudited financial results for Q3 and nine months ended December 31, 2025, were approved and reviewed without qualification by auditors.

Financial highlights

• Revenue from operations grew 8.4% YoY and 4.3% sequentially; gross profit margin improved by 129 bps YoY to 59.7%.

• Net profit for the period was INR 910 crore, including a one-time labor code amendment cost of INR 65 crore.

• EBITDA margin stood at 20.5%, up 11 bps YoY; net profit margin improved to 10.5%.

• R&D spend was ₹409 crore (4.7% of sales), focused on biosimilars and specialty products.

• Net capex of $79 million primarily for capability enhancements and new business development.

Outlook and guidance

• Strategic focus on expanding biosimilars portfolio, with multiple launches and regulatory filings planned through 2026.

• Expecting annualized Pen G production to exceed 10,000 metric tons over the next 12 months.

• EBITDA margin target set at 20%-21% for FY 2026, with strong earnings growth visibility.

• Power purchase agreement with Garuda Renewables expected to reduce power costs and improve ESG profile.

• U.S. injectable business expected to maintain double-digit growth until FDA warning letter is lifted.